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Simple Ethereum For Beginners Explained 2021

Talking about Ethereum; In this day and age, a number of people who are active on the Internet have come across popular crypto terms like DeFi, Oracle, dApps etc. Crypto brands that are well known in this tech era are Bitcoin, Cardano, Doge, and one of the big shots: Ethereum.

Ethereum or ether for short is the native coin of Ethereum’s smart contract platform, and in this article, we will share concisely the basic facts and figures of Ethereum.


What Is Ethereum?

Ethereum is one of the game-changers in the cryptocurrency industry. It is so hot stuff it has its programming language called “Solidity”.

Ethereum is a public ledger that is decentralized in nature and created for recording transactions and verifying them. With a network, Ethereum users can create, publish, monetize and make use of the platform’s applications. Currently, Ethereum is #2 in the market after Bitcoin.

Another facet of Ethereum is that it is an open-source platform based on blockchain Activities that take place on the Ether platform are the creation and sharing of entertainment applications, finance, and business services. These decentralized applications are not free-to-use however. Users are required to pay a fee referred to as “gas”.

What makes Ethereum distinct from its top rival, Bitcoin is that it is programmable and is a lot like a marketplace. It is also super safe from theft, fraud, censorship, and other compromises. Let’s get down to some history stuff!

Ethereum was launched in July 2015 on the genius of a handful of blockchain fans. Notable figures in this group are founders of ConSenSys Joe Lubin and Vitalik Buterin. Buterin is the brains behind the entire Ethereum idea and is currently the company CEO as well as the public face. Naturally, he is one of world’s youngest crypto billionaires, born in 1994. Today, Ether is easily one of the most common forms of crypto payments on both online and offline sites.

The way Ethereum is designed, its impenetrability has promoted suggestions of the Ethereum platform being used as storage for exclusive information such as voting systems and healthcare records. Also with Ethereum, programmers can create applications and market games all they want.

Ethereum’s hard fork came to be when a nefarious participant in 2016 made away with over $50 million worth of Ether gathered to fund a project named ” The DAO”.

The ETH community sought to cancel this theft by creating what we now know as a hard fork which invalidated the compromised Ethereum blockchain and created a new blockchain called Ethereum Classic. By May 2018, the amount of Ether in circulation had passed the 100 million notch. Ethereum once stands out in comparison to Bitcoin in that it is limitless.

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The network keeps investing efforts to ensure speed and scalability for smooth utilization by users. The big dream is to have a platform where all types of applications can be stored securely. That being said, Ethereum has also faced criticisms must like every other cryptocurrency.

One major criticism is that Ether, same with other gems tends to copy the price action of Bitcoin. Fees are another area Ethereum has faced criticism.

If you’re an investor and you’re reading this, Ethereum is a good gem to broaden your portfolio with. Ethereum is not a form of digital gold, Ethereum is more of a world-class platform for computation that accommodates a wide range of cryptocurrencies and dApps ecosystems.

Does Ethereum also leverage the network effect like Bitcoin? Your answer is a big yes! Because of the huge number of cryptocurrencies pegged to Ethereum’s platform, coupled with open-source dApps, Ethereum has sufficiently enjoyed the benefits they provide while providing long-term value.

With Ethereum’s rich platform, smart contracts which execute based on the terms in the contracts’ code are enabled. Also, know that the Ethereum network gathers Ether from users to be swapped for facilitating smart contracts.

 One unique feature of Ethereum’s smart contract technology is its ability to create brand new markets and also tear apart long-existing industries.

In the industry, Ethereum’s platform is currently being used at a high level, causing the utility and value of Ether token to increase equally. Like Bitcoin, Ethereum bullish Ethereum preachers and investors are keen on the potential of Ethereum and are actively earning by acquiring Ether.

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